The Auditor-Audit Firm Relationship and Its Effect on Burnout and Turnover Intention

2012 ◽  
Vol 26 (4) ◽  
pp. 707-723 ◽  
Author(s):  
David N. Herda ◽  
James J. Lavelle
Keyword(s):  
Social Exchange ◽  
Turnover Intention ◽  
Data Availability ◽  
Perceived Support ◽  
Negative Consequences ◽  
Exchange Relationship ◽  
Exchange Relationships ◽  
Accounting Firms ◽  
Audit Firm ◽  
Organizational Fairness

SYNOPSIS: Auditor burnout is an important issue in public accounting, as burnout has negative consequences for both the auditor and the audit firm. We examine how social-exchange relationships between auditors and their firm affect auditor burnout and turnover intention. Using a sample of 204 auditors at two accounting firms, we find that perceived fair treatment by the firm predicts perceived support from the firm, and perceived support predicts auditor commitment to the firm. We find that commitment is negatively related to auditor burnout and turnover intention and burnout is positively related to turnover intention. We also find that perceived firm fairness is directly associated with reduced levels of auditor burnout and turnover intention. The results underscore the important role that organizational fairness plays in engendering a social-exchange relationship between auditors and their firm, leading to reduced levels of burnout and turnover intention, benefitting both the auditor and the firm. Data Availability: Please contact the first author.

Auditor Commitment to Privately Held Clients and its Effect on Value-Added Audit Service

2012 ◽  
Vol 32 (1) ◽  
pp. 113-137 ◽  
Author(s):  
David N. Herda ◽  
James J. Lavelle
Keyword(s):  
Social Exchange ◽  
Social Exchange Theory ◽  
Value Added ◽  
Perceived Support ◽  
Research Model ◽  
Public Accounting ◽  
Exchange Relationships ◽  
Accounting Firms ◽  
Levels Of Service ◽  
Privately Held

SUMMARY This study examines auditor commitment to clients and how it affects the level of value-added audit service (e.g., management letter comments) provided to the clients. Our research model is based on social exchange theory. Using a sample of 204 auditors at two public accounting firms that principally serve privately held clients, we find that perceived fair treatment by the client predicts perceived support from the client, and perceived support predicts auditor commitment to the client. We find that client commitment is positively associated with the extent of value-added audit service provided to the client. The results highlight the important role that perceptions of client fairness play in engendering social exchange relationships between individual auditors and clients. Higher-quality relationships lead to higher levels of service that go beyond the basic requirements of the audit itself.

Once bitten, twice shy? Past breach and present exchange relationships

2014 ◽  
Vol 29 (8) ◽  
pp. 938-952 ◽  
Author(s):  
Robert Buch ◽  
Bård Kuvaas ◽  
Lynn Shore ◽  
Anders Dysvik
Keyword(s):  
Social Exchange ◽  
Organizational Support ◽  
Psychological Contract ◽  
Negative Relationship ◽  
Psychological Contract Breach ◽  
Economic Exchange ◽  
Exchange Relationship ◽  
Exchange Relationships ◽  
Contract Breach ◽  
Content Type

Purpose – The purpose of this paper is to examine the relationship between previous employer's psychological contract breach and exchange perceptions with the current employer, and seeks to uncover moderating influences of perceived organizational support (POS). Design/methodology/approach – Data were obtained from a cross-lagged sample of 314 employees in Norway. Hierarchical moderated regression analysis was used to test the hypotheses. Findings – The authors found a positive relationship between previous employer's psychological contract breach and economic exchange with the current employer, and a negative relationship between previous employer's psychological breach and social exchange with the current employer. The authors also found that POS from the current employer attenuates the positive association between previous employer's breach and economic exchange with the current employer. Research limitations/implications – The data were cross-lagged, so causal inferences should be made with caution. Practical implications – Managers should be aware that past employment experiences may relate to present employment exchange relationships. In addition, POS from current employer may serve to counterbalance the “carry over” effects of past employment experiences. Social implications – In light of the present global economic climate, increasing POS among employees could decrease the likelihood that they assume that the employment relationship constitutes an economic exchange relationship. Originality/value – This study contributes to a more complete understanding of factors that shape employees’ relationships with their organization. Furthermore, this study suggests a way by which organizations can repair damages incurred by previous employer's psychological contract breach.

Auditors' Relationship with Their Accounting Firm and Its Effect on Burnout, Turnover Intention, and Post-Employment Citizenship

2012 ◽  
Vol 6 (2) ◽  
pp. P13-P17 ◽  
Author(s):  
David N. Herda
Keyword(s):  
Turnover Intention ◽  
Organizational Outcomes ◽  
Performance Evaluations ◽  
Accounting Firm ◽  
Audit Firm ◽  
Organizational Fairness ◽  
Audit Firms ◽  
Burn Out ◽  
The Relationship ◽  
Big Four

SUMMARY This summary discusses two related papers (one focusing on auditors currently employed by their firm and the other on firm alumni) that examine the relationship between auditors and their firm; both papers address auditors' commitment to their firm and how it affects important organizational outcomes including burnout, turnover intention, and post-employment citizenship. Herda and Lavelle's (2012) paper, “The Auditor-Audit Firm Relationship and Its Effect on Burnout and Turnover Intention,” suggests that stronger relationships between auditors and their firms can reduce burnout and turnover intention. Herda and Lavelle's (2011) paper, “The Effects of Organizational Fairness and Commitment on the Extent of Benefits Big Four Alumni Provide Their Former Firm,” investigates how these relationships continue to provide benefits to the firm after the auditor's employment with the firm has ended. The results of both papers underscore the importance of fair treatment in building high-quality relationships between auditors and their firm. If audit firms use fair procedures when making organizational decisions (e.g., performance evaluations, scheduling, paid time-off), then current auditors are less likely to burn out and leave the firm, and former auditors are more likely to send the firm business.

scholarly journals Audit Firm Perspective on Audit Firm Rotation and Enhancing Independence: Evidence from PCAOB Comment Letters

2016 ◽  
Vol 11 (1) ◽  
pp. A22-A44
Author(s):  
L. Tyler Williams ◽  
W. Mark Wilder
Keyword(s):  
Audit Committee ◽  
Auditor Independence ◽  
Overwhelming Majority ◽  
Data Availability ◽  
Public Accounting ◽  
Accounting Firms ◽  
Audit Firm ◽  
Public Accounting Firms ◽  
Comment Letters ◽  
Alternative Solutions

SUMMARY This study examines practitioners' perspectives on audit firm rotation and alternative solutions to enhance independence in the audit industry as solicited by the PCAOB's “Concept Release on Audit Firm Rotation and Auditor Independence.” Accordingly, we synthesize the opinions found in comment letters of 15 American public accounting firms—eight of which are annually inspected by the PCAOB and seven of which are inspected tri-annually. Altogether, we find the firms generally offer homogenous rationale for opposition to audit firm rotation. However, most importantly, we note that the overwhelming majority of the alternative solutions offered by the firms to enhance the independence relationship between auditor and client lies with fortifying the audit committee. To that end, while regulators have generally attempted to strengthen independence by introducing regulation at the auditor level, our review indicates that perhaps a shift in regulatory philosophy is warranted—one that suggests progressing regulation at the client level. Data Availability: Publicly available.

scholarly journals Perspective on COVID-19 Pandemic Factors Impacting Organizational Leadership

2021 ◽  
Vol 13 (6) ◽  
pp. 3230
Author(s):  
James K.C. Chen ◽  
Thitima Sriphon
Keyword(s):  
Employee Engagement ◽  
Social Exchange ◽  
Organizational Leadership ◽  
Negative Impact ◽  
Positive Impact ◽  
Leadership Skills ◽  
Exchange Relationship ◽  
Exchange Relationships ◽  
Communal Relationships ◽  
The Impact

Employees are important assets of an organization. Therefore, the employee engagement in teamwork is extremely vital for long-term organizational development. Good managers need excellent leadership skills. However, as the COVID-19 pandemic rapidly spreads around the world, many countries implemented strategies to avoid infection, such as working from home, isolation of infected people from others, and 14 days of self-quarantine. These strategies impact the trust, communal relationships, and social exchange relationships among organizational employees. However, communal and social exchange relationships are necessary for organizational leadership, and they are considered as the basis of social networks. The trust, communal relationships, social exchange relationships, and leadership in an organization are an interesting issue, particularly in the COVID-19 time, since the role of leaders is very crucial for maintaining organizational sustainability. The main objective of this study is to investigate the impact of COVID-19 on leadership in organizations based on trust, communal relationships, and social exchange relationships. The study employed correlation analysis to explore the interrelationships between variables. The 220 samples collected consisted of basic, middle, and high managers of organizations. The findings show that COVID-19 impacted organizational leadership. COVID-19 (F1) and (F2) factors integrated with each variable: (1) trust, (2) communal relationships, and (3) social exchange relationships created a stronger relationship between trust and leadership, communal relationships and leadership, and also social exchange relationship and leadership in organizations. On the contrary, Covid-19 (F3) factors integrated with each variable: (1) trust, (2) communal relationships, and (3) social exchange relationships decreased a relationship between trust and leadership, communal relationships and leadership, and also social exchange relationships and leadership in organizations. These results can help CEOs in organizations to perceive what factors have a positive impact or a negative impact on leadership in organizations in order to improve their leadership skills, even post COVID-19. The managerial implications are that (1) leaders need good communication skills to share true information with empathy and optimism and (2) leaders need to be thoughtful and capable to handle change in uncertain situations ethically.

scholarly journals The Value Of Partnership In Offshoring

2013 ◽  
Vol 11 (7) ◽  
pp. 297
Author(s):  
Jeremy St. John ◽  
Carl S. Guynes Guynes ◽  
Richard Vedder
Keyword(s):  
Social Exchange ◽  
Social Exchange Theory ◽  
Exchange Theory ◽  
Strategic Partnership ◽  
Exchange Relationship ◽  
Exchange Relationships ◽  
Partnership Quality ◽  
The Social ◽  
It Offshoring ◽  
Maintain Relationship

Partnership or strategic partnership is a label attributed to client-vendor relationships characterized as highly involved. This high involvement or collaboration is considered a partnership quality. This study uses the social exchange theory to examine the relationship between clients and vendors as partners in offshoring. Social exchange theory requires that as members of an exchange relationship receive benefit, they must return an equivalent amount of benefit to maintain relationship equilibrium (Homans, 1958).Trust is an important element in exchange relationships because it helpsto ensure equilibrium. Management of theclient-vendor relationship is critical for the success of the IT offshoring arrangement.

Organization-Based Self-Esteem Affects Employees' Exchange Relationship Perceptions and Extrarole Behavior

2016 ◽  
Vol 44 (3) ◽  
pp. 509-517 ◽  
Author(s):  
Yanhan Zhu
Keyword(s):  
Social Exchange ◽  
Positive Relationship ◽  
Mainland China ◽  
Negative Relationship ◽  
Self Esteem ◽  
Moderating Effect ◽  
Exchange Relationship ◽  
Significant Positive Relationship ◽  
Significant Negative Relationship ◽  
Practical Implications

The 2 types of exchange relationship perceptions—social exchange relationship perceptions (SERPs) and economic exchange relationship perceptions (EERPs)—constitute the primary concept for understanding individual behavior in the workplace. Using a sample of 581 employees from Mainland China, I explored the effects of SERPs and EERPs on employee extrarole behavior (ERB), as well as the moderating effect of organization-based self-esteem (OBSE) on the relationships between SERPs and ERB, and between EERPs and ERB. The results revealed a significant positive relationship between SERPs and ERB, a significant negative relationship between EERPs and ERB, and a significant moderating effect for OBSE. Theoretical and practical implications of these findings are discussed.

Family-supportive organizational environment and turnover intention

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fatemeh Taheri
Keyword(s):  
Job Satisfaction ◽  
Turnover Intention ◽  
Work Life ◽  
Organizational Environment ◽  
Staff Retention ◽  
Negative Consequences ◽  
Content Type ◽  
Work Family ◽  
Work Family Enrichment ◽  
Family Enrichment

PurposeThe purpose of this paper is to test a model in which family-supportive organizational environment is associated with lower levels of turnover intention through higher levels of work-family enrichment and job satisfaction.Design/methodology/approachBased on a sample of 300 employees, the bootstrap procedure for estimating indirect correlations in multiple mediator models was used to test the research hypotheses.FindingsThe results suggest that employees experiencing high levels of family-supportive organizational environment are likely to report lower intention to leave their profession by virtue of their higher levels of job satisfaction and work-life enrichment.Research limitations/implicationsThe study is limited to public organization and sample size. Further research is needed to make comparison between large/state-owned and small/private organizations.Practical implicationsIn the Iran context, work-family enrichment and job satisfaction are effective in reducing the employees' turnover intention. Organizations should show concerns for the employees' work-life enrichment and job satisfaction to reduce their turnover intention.Social implicationsTurnover is one of the problems of organizations in many countries throughout the world including Iran, which has negative consequences through increasing the cost of organizations. The results of this study suggest ways in which staff retention could be improved.Originality/valueThe present study contributes to supportive organizational environment literature by addressing the relationship between family-supportive organizational environment and employee-related outcomes. Given some commonalities between Iran and other developing countries, the findings might be of potential interest in comparative studies dealing with the employees' turnover issue.

scholarly journals Consequences of Exposure to Violence, Aggression, and Sexual Harassment in Private Security Work: A Mediation Model

2020 ◽  
pp. 088626052098443
Author(s):  
Alexander Herrmann ◽  
Christian Seubert ◽  
Jürgen Glaser
Keyword(s):  
High Risk ◽  
Sexual Harassment ◽  
Workplace Violence ◽  
Turnover Intention ◽  
Exposure To Violence ◽  
Private Security ◽  
Equation Modeling ◽  
Negative Consequences ◽  
Effective Prevention ◽  
Psychosomatic Complaints

While exposure to violence and aggression is well known for its detrimental effects on employees’ health as well as organizational outcomes, certain high-risk work domains have scarcely been researched. Thus, this study set out to determine negative consequences of work-related exposure to four forms of harmful behaviors in private security. In a sample of 487 German-speaking security guards, 23% had experienced outsider-initiated violence, 56% aggressive acts, 30% vicarious violent acts, and 3% were sexually harassed over the past 12 months. Additionally, 19% reported substantial to extreme worries about violence. By presenting an integrated model of negative consequences to outsider-initiated violent, aggressive as well as sexual harassing acts, we strived to extend previous research by showing that turnover intention (as an ultimate negative behavioral outcome) is only indirectly related to these experiences via worries about violence and psychosomatic complaints. Structural equation modeling provided support for the model and plausibility for a sequential “two-step” prediction of turnover intention. Further, we provided support that worries about violence are not solely triggered by directly experiencing physical violence but also vicarious violence, aggressive acts, and sexual harassment. Consistent with previous studies, worries about violence were identified as a central mediator in the transmission process from exposure to harmful behaviors at work to negative consequences, that is, psychosomatic complaints and turnover intention. Our findings have implications for the detailed understanding of consequences emerging from exposure to workplace violence and aggression as well as the development of effective prevention strategies especially in high-risk occupations such as private security.

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